Company profile: Steady earnings growth of DBH

Delta Brac Housing Finance Corporation (DBH) has reported profit after tax of Tk 1,077 million in 2019, rising 2.78 per cent over the previous year.

With Tk 44.30 billion housing loan portfolio, DBH is the largest and specialist housing finance institution in the private sector of the country.

Its earnings per share (EPS) in 2019 also increased to Tk 8.04 which was Tk 7.82 in 2018.

“Considering the present market scenario this is a testament to the fundamental strength of the company,” said Nasir A Choudhury, chairman of DBH, in the annual report, 2019.

Mr Nasir noted that against the backdrop of volatility prevailing in the financial market owing to rising default loan and depleting liquidity, DBH has taken a relatively cautious approach during 2019.

However, unlike many other financiers, superior asset quality continues to be one of the core segments of DBH.

Even in this challenging macroeconomic environment, the non- performing loan (NPL) of DBH remains below half per cent.

Presently, DBH has funds under management in excess of Tk 87.93 billion.

Being a housing finance specialist, DBH has forecast the situation prudently and focused on extending its base of core retail clients while maintaining the asset quality, according to the directors’ report.

The company’s home loan book in housing finance grew at a meager pace of 1.54 per cent to Tk 44.52 billion during the year while keeping gross non-performing loan ratio at the level of 0.45 per cent only.

The company’s interest income, mostly from home loans, increased by 8.50 per cent in 2019 (Tk 498 million).

“Efficient management of interest rate risk management ensured moderate growth of interest income in 2019”.

During the year, the gross interest income from the housing finance portfolio stood at Tk 5,189.88 million.

DBH has achieved the lowest level of NPL, outperforming its competitors.

The DBH has tightened its belt and taking coordinated steps to gear up recovery efforts to hold NPL volume to a level where requirements for financial provisions against such loans could be saddled up to a bare minimum with lesser impact on profitability.

All this is expected to bolster business and benefits for all stakeholders over time.

Q. M. Shariful Ala, managing director of DBH, said: Considering the overall situation, we intend to achieve cautious and healthy growth in earnings.

“The company is planning to continue its operation with a steady outlook,” said Mr Shariful.

Considering the market condition, DBH planned its budget for the year 2020, where the total disbursement target is projected to Tk 12,938 million which is 28 per cent higher than the disbursement figure of 2019, he informed.

The company expects to maintain healthy dividends to its shareholders in line with previous years.

The board has recommended 20 per cent cash and 15 per cent stock dividend out of profit for the year ended December 31, 2019.

The final approval will come during the annual general meeting scheduled to be held on 29 March.

The company’s net asset value (NAV) per share was Tk 43.36 and net operating cash flow per share (NOCFPS) of Tk 14.40 for the year ended on December 31, 2019 as against Tk 7.82 (restated), Tk 41.36 and Tk 10.90 respectively for the same period of the previous year.

Each share of the company, which was listed on the Dhaka bourse in 2008, closed at Tk 96.00 on Thursday.

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